Danfoss India Aims To Ramp Up Local Manufacturing Capabilities Over Next 5 years

Danfoss, a global leader in heating, ventilation, air-conditioning (HVAC) systems, refrigeration compressors, and controls, has unveiled plans to ramp up its local manufacturing capabilities in India. With a strong focus on supporting India’s ‘Make in India’ campaign, the company is making a significant Rs 500 crore investment over the next five years to expand its production capacity for HVAC and refrigeration solutions.

Danfoss India, a subsidiary of the Denmark-based multinational, has a clear vision of increasing local manufacturing and tapping into India’s growing HVAC and refrigeration market. The company’s investment is aimed at localizing production for compressors, heat exchangers, and controls. With HVAC and refrigeration systems seeing a boom in demand across India, this strategic move will allow Danfoss to supply world-class products that are perfectly suited to local needs.

The Rs 500 crore investment will enable Danfoss to align its operations with India’s growing demand for energy-efficient solutions, while fostering the growth of a local supplier ecosystem. The company’s commitment goes beyond just meeting local demand; it’s about creating a sustainable, future-ready business model. Danfoss will also focus on developing cutting-edge technologies that will help India meet its sustainability goals, particularly in the fast-evolving HVACR (heating, ventilation, air-conditioning, and refrigeration) sector.

Kristian Strand, President of Danfoss Commercial Compressors, highlighted India as a crucial pillar of Danfoss’s global strategy. “India’s HVACR market is growing rapidly, and we want to support this growth with localized solutions that are efficient, sustainable, and affordable,” he said. By focusing on manufacturing locally, Danfoss will not only create more jobs but will also increase its responsiveness to geopolitical changes and market opportunities.

The decision to localize production comes at a time when global supply chains are undergoing significant shifts. By investing in India, Danfoss is ensuring that it stays competitive in an ever-evolving market. In addition to meeting domestic demand, the company plans to use India as a manufacturing hub for both the local and global markets. Ravichandran Purushothaman, Region President of Danfoss India, expressed confidence in the Indian team’s potential, saying, “Danfoss India is poised to become a manufacturing powerhouse, not only for the Indian market but also for global exports.”

The expanded production capabilities will help Danfoss deliver European-quality HVAC and refrigeration products to Indian customers more efficiently and at a faster pace, ensuring that the company remains responsive to both domestic and global market needs. This investment will also support Danfoss’s climate solutions portfolio, as India plays a key role in its global sustainability goals.

Danfoss’s move to increase its manufacturing capabilities in India goes hand in hand with the country’s focus on sustainable development. The company aims to support India’s energy transition by providing high-performance, energy-efficient systems that help reduce the nation’s carbon footprint. By strengthening its local presence, Danfoss is reinforcing its commitment to sustainable innovation while supporting the Government of India’s Make in India initiative.

With its Rs 500 crore investment in local manufacturing, Danfoss is poised to play a pivotal role in India’s HVAC and refrigeration market. This strategic decision not only enhances India’s position as a global manufacturing hub but also supports the nation’s broader sustainability and energy efficiency goals. Danfoss’s expansion is a testament to the company’s deep commitment to India, ensuring that Indian consumers have access to world-class products and solutions tailored to their unique needs.

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